9M 2016 Conference Call - Datalogic...Conference Call November 11th, 2016 Agenda 9M 2016 Outlook 2 9M 2016 3 4 3Q 2016 Key Factors FOCUS ON CLIENT MARKET ORGANISATION * new products

9M 2016

Conference Call

November 11th

, 2016

Agenda

9M 2016

Outlook

2

9M 2016

3

4

3Q 2016 Key Factors

FOCUS ON CLIENT

MARKET

ORGANISATION

* new products refer to products announced in the last 24 months

The process of reorganization of the Group by verticals –

Retail, T&L, Factory Automation and Healthcare – is

ongoing

Critical components Insourcing

Finalized process of BU System spin off, executed from

1st

October

Continuous focus on innovation: new launches of

breakthrough products in the quarter - Joya Touch and

Shop Evolution 7

Growth of Non Food Retailers in US, T&L in Europe and

FA in China

20.4% of revenues comes from new products*

Double digit growth in Europe both in ADC and IA

Some impact from political uncertainties in US

Highlights 3Q 2016

5

Revenues

EBITDA

NFP

+4.6% YoY to 139.9 mln Euro (+4.8% at constant exchange rate)

mainly thanks to Europe, both in ADC and IA, and to North and

South America in ADC

Some slowdown in result of US due to political uncertainties

+15.6% YoY to 21.7 mln Euro thanks to strong operating cost

reduction (-1.1% overall)

R&D costs at 8.8% of revenues vs 8.3% in 2Q, returning back to

our target

EBITDA margin at 15.5% vs 14.0% of 3Q 2015

Positive trend of financial costs continues

NFP down to 37.6 mln Euro from 54.8 mln Euro at 30.09.2015

€ mln 3Q2016 3Q2015 YoY% 2Q2016 QoQ %

Revenues 139.9 133.8 4.6% 146.5 (4.5%)

Gross Operating Profit 63.5 61.3 3.5% 68.9 (7.8%)

EBITDA 21.7 18.8 15.6% 26.1 (17.0%)

EBITDA Margin 15.5% 14.0% 17.8%

EBIT 17.4 13.4 30.1% 21.1 (17.4%)

EBIT Margin 12.5% 10.0% 14.4%

6

3Q 2016: performance above historical

average

€ mln

€ mln

108.2115.8

116.0 124.5 122.3

135.2 133.8143.8

135.4146.5

139.9

Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16

REVENUES

15.5

18.717.9 17.4

15.7

18.6 18.8

20.7

18.8

26.1

21.7

14.3%16.1% 15.4%

14.0%12.8%

13.8% 14.0% 14.4% 13.9%

17.8%

15.5%

Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16

EBITDA EBITDA margin %

9M 2016 Profit and Loss

7

€ 000 9M2016 9M2015 Var %

Revenues 421,753 100.0% 391,295 100.0% 7.8%

COGS (227,269) (53.9%) (208,546) (53.3%) 9.0%

Gross Operating Margin 194,484 46.1% 182,749 46.7% 6.4%

Other Revenues 2,321 0.6% 1,483 0.4% 56.5%

R&D (36,636) (8.7%) (34,764) (8.9%) 5.4%

Distribution Costs (74,892) (17.8%) (74,758) (19.1%) 0.2%

Administrative Expenses (27,873) (6.6%) (29,056) (7.4%) (4.1%)

Other operating expenses (1,147) (0.3%) (1,842) (0.5%) (37.7%)

Total Operating expenses and others (140,548) (33.3%) (140,420) (35.9%) 0.1%

Non recurring costs/rev 149 0.0% (1,428) (0.4%) n.a.

Amort. Intang. Assets from acquis. (3,656) (0.9%) (4,295) (1.1%) (14.9%)

Operating Profit (EBIT) 52,750 12.5% 38,089 9.7% 38.5%

Financial (costs)/rev. (2,603) (0.6%) (3,950) (1.0%) (34.1%)

Results from equity investments (466) (0.1%) 40 0.0% n.a.

Foreign exchange (costs)/rev. (548) (0.1%) 2,387 0.6% n.a.

EBT 49,133 11.6% 36,566 9.3% 34.4%

Taxes (8,251) (2.0%) (6,143) (1.6%) 34.3%

Net Income 40,882 9.7% 30,423 7.8% 34.4%

Depreciation (6,629) (1.6%) (5,773) (1.5%) 14.8%

Amortization (3,753) (0.9%) (3,493) (0.9%) 7.4%

EBITDA 66,639 15.8% 53,078 13.6% 25.5%

Exchange Rate 1.1162 1.1144

Revenues Trend by Division

8

ADC Division: +9.3% to 292.7 million Euro

POS check out fixed scanners with the

new imaging technology is in roll out

phase within major retailers

The new DL-Axist is pushing sales of

mobile computers

The new Joya Touch and the software

Shopevolution 7: successful introduction

and great expectations as for custormers’

feedback

Industrial Automation division ex BU

Systems: + 5.4% to 99 million Euro

Strong growth in volume of ID and

Sensors products sold, mainly thanks to

Matrix family and Safety Barriers

BU Systems, that benefits from Royal Mail

order, grew by 47.2% to 13.8 million Euro

REVENUES BY DIVISION (%)

REVENUES BY DIVISION

ADC

69%

IA

27%

Informatics

4%

€mln 9M 2016 9M 2015 Var %

ADC 292.7 267.7 9.3%

IA 112.9 103.4 9.2%

- IA ex BU Systems 99.1 94.0 5.4%

Informatics 18.6 22.1 (15.9%)

Corporate and Adj. (2.4) (1.9) 26.3%

Total Revenues 421.8 391.3 7.8%

Revenues Trend by Country

9

Europe continues to generate robust

growth in particular in IA* (+13.4%) and

in ADC (+8.6%),

North America at two speeds: double

digit growth of ADC and a decrease in

IA* due to a seasonality effect

impacting T&L projects

Strong growth in IA for Greater China

and in ADC for Latin America

REVENUES BY GEOGRAPHIC AREA

* IA excluding BU Systems

Europe

51%

North

America

30%

Asia Pacific

12%

ROW

7%

€mln 9M 2016 9M 2015 Var %

Europe 216.2 197.4 9.5%

North America 126.4 117.1 8.0%

Asia Pacific 51.4 52.8 (2.5%)

ROW 27.8 24.0 15.5%

Total Revenues 421.8 391.3 7.8%

FY Segment Reporting: GOP and EBITDA

10

GOP BY DIVISION EBITDA* BY DIVISION

(*) With the purpose to better report the operating sectors economic performances, it was deemed appropriate to highlight the Divisional EBITDA as monitoring KPI.

€ mln € mln

€ mln € mln

127.0

46.6

10.0(0.9)

182.7

137.4

49.8

8.1 (0.8)

194.5

ADC IA Informatics Corporate Total Group

9M2015 9M2016

Gross Operating Margin 9M2016 9M2015

ADC 46.9% 47.4%

Industrial Automation 44.1% 45.1%

- IA ex BU Systems 48.4% 50.0%

Informatics 43.5% 45.2%

Total Group 46.1% 46.7%

59.8

4.60.3 (11.6)

53.1

71.9

6.9

(0.9)(11.3)

66.6


9M2015 9M2016

EBITDA Margin 9M2016 9M2015

ADC 24.6% 22.3%


- IA ex BU Systems 8.3% 9.0%

Informatics (4.8%) 1.4%


38.0

21.3

2.8 (3.3)

58.8

47.1

29.0

3.7 (3.5)

76.3


9M2015 9M2016

FY Segment Reporting: R&D and TWC

11

R&D BY DIVISION TWC BY DIVISION

€ mln € mln

€ mln € mln

R&D/Revenues 9M2016 9M2015

ADC 10.1% 8.9%




23.7

12.4

0.8(2.1)

34.8

29.6

13.7

1.1 (7.8)

36.6


9M2015 9M2016

TWC/Revenues 9M2016 9M2015

ADC 12.1% 10.6%




53.1

(14.3)

29.3

(0.1) (0.2)

1.0

(3.1)

0.9 66.6

9M2015 Price Vol.

Sales/Mix

Exch rate

€ vs $

Oper

Expenses

INF + System Dir Cogs Other 9M2016

EBITDA*: Actual vs Last Year

12

(*) Ordinary Operating Profit before non recurring costs/revenues and depreciation & amortization (EBITDA)

Note:

The Exchange rate variance is the result of the difference between September‘16 YTD Actual (1.1162) and September‘15 YTD Actual (1.1144)€/USD exchange rates.

Vol. sales/Mix 28,1

Service sales 1.2

Price Erosion: (2.9%) on Tot Rev

One shot marketing actions to boost US

channel penetration: (1.4) mln Eur

Of which

Materials 0.7

Labour 0.6

Devaluation (0.8)

Warr Cost & Prov (1.3)

One off Royalties (1.3)

Positive Items

Negative Items

€ mln

EBITDA

15.8%

EBITDA

13.6%

317.6

354.7

37.6

76.3

111.9

36.1

Consolidated Balance Sheet at 30.09.2016

13

TOTAL ASSETS EQUITY AND NFP

Total Fixed

Assets

Trade Working

Capital

Other Assets

Other Liability

Net Financial

Position

Equity

€ mln

(21.0) 64.1

(39.8)

(9.2)

(12.3)

(14.5) (0.4)

(4.5) (37.6)

Net Debt

Dec 15

Operating

cash Flow Capex

Taxes Dividend

payment

Purchase /

Sale of shares

Other Net Debt

Sept 16

Negative Cash flow

Positive Cash Flow

Ch Trade

NWC

Net Debt Analysis: Dec ‘15 – Sept’16

14

EBT 49.1

Depreciation & Amortization 14.0

Changes in provisions and others 1.0

Acc. Receivable (3.9)

Inventory (20.9)

Acc. Payable (15.0)

Of which:

Hungarian plant (0.3)

Moulds (1.5)

Electronics machineries / Software (1.9)

Development costs capitalization (1.3)

Office refurbishment (FR, UK, China, SpA, Infk) (1.2)

2.2% on

revenues

LT MIP cash out (4.7)

Reserves changes (0.3)

Other investments 0.5

€ mln

ADC new products: Mobile Computer-

Store Automation

Joya Touch

Multi-purpose device for retail applications.

Multi-purpose device: handheld or

pistol-grip

Wireless Charging Cradle

Datalogic’s SoftSpot™ Technology

2D imaging technology

Easily customized in a number of ways

Fast Charging/Large Battery

Several application: Retail, Self-

shopping, Hospitality and Restaurants,

Access Control, Inventory, Store Floor

Application

Shopevolution 7 Middleware

Self-shopping software platform.

Cloud-based Multi-store Support

Smartphones Android and iOS

Support

Joya Touch Support

Enhanced Consumer Features

including social shopping,

eCoupons, shopping list, product

rating, indoor navigation, best

sellers

Launch at ˝One Device for all retail event˝ in

Venice on the 26-27 October

Safety and Sensors

S65-M

Long Range Background Suppressor for

Factory Automation mainly for Packaging

applications

IA new products

Identification

WebSentinel PLUS

Monitor and information collector for Factory Automation and

Transportation and Logistics applications.

Safety and Sensors

TL46 Low jitter

Low jitter contrast sensor for

Factory Automation mainly for

Packging applications

Machine Vision

Impact + Object Detector

Machine vision solution for fast and reliable object

detection applications for T&L Industry based on

the P-Series Smart Camera.

Outlook

17

2016 Outlook

Expected 2016 revenues almost in line with 9

months growth trend.

R&D investment up to 9.0% of revenues to

keep the innovation leadership in the market

Strong Operating Cost control and reduction

of G&A

Maintain Strong Cash Generation

18

19

IR CONTACTS

IR Manager

Vincenza Colucci

CDR Communication Srl

Tel. +39 335 6909547

[email protected]

IR Assistant

Daniela Giglioli

Tel. +39 051 3147109

Fax +39 051 3147205

E-mail [email protected]

Via Candini, 2

40012 Lippo di Calderara di Reno

Bologna – Italy

www.datalogic.com

DATALOGIC ON LINE

Contact

This presentation contains statements that are neither reported financial results nor other historical information. These statements are forward-

looking statements. These forward-looking statements rely on a number of assumptions and are subject to a number of risks and uncertainties,

many of which are outside the control of Datalogic S.p.A., that could cause actual results to differ materially from those expressed in or implied by

such statements, such as future market conditions, currency fluctuations, the behavior of other market participants and the actions of

governmental and state regulators

© 2016 Datalogic S.p.A. - All rights reserved. • Protected to the fullest extent under U.S. and international laws. • Copying, or altering of this

document is prohibited without express written consent from Datalogic S.p.A. Datalogic and the Datalogic logo are registered trademarks of

Datalogic S.p.A. in many countries, including the U.S.A. and the E.U. All other brand and product names may be trademarks of their respective

owners.

20

Datalogic S.p.A.

Via Candini, 2

40012 Lippo di Calderara di Reno

Bologna – Italy

Tel. +39 051 3147011

Fax +39 051 3147205

E-mail [email protected]

mailto:[email protected]

Documents

9M 2016 Conference Call - Datalogic...Conference Call November 11th, 2016 Agenda 9M 2016 Outlook 2 9M 2016 3 4 3Q 2016 Key Factors FOCUS ON CLIENT MARKET ORGANISATION * new products